Which type of currency involves physical coins and bills?

The correct answer is cash, as it specifically refers to physical forms of money that include coins and bills. Cash is the most tangible representation of currency and is widely accepted for day-to-day transactions, making it distinct from other forms of payment.

Credit involves borrowing money to make purchases, where payment is made later, typically using credit cards or loans. Thus, it does not involve the immediate physical exchange of money.

Digital currency refers to money that exists only in electronic form, such as cryptocurrencies or funds that are transferred via online banking and do not have a physical counterpart.

Checks are a form of payment that allows one to transfer money from their bank account to another party via writing a document, but they are not considered cash since they do not represent immediate physical currency.

Therefore, cash is the only option that directly signifies the physical coins and bills used in everyday transactions.